The purpose of the Highway Use Tax Evasion program is to support the State and Federal efforts to enhance motor fuel tax enforcement. [1114]

Funding Features

Funds are to be allocated at the discretion of the Secretary to the Internal Revenue Service and to the States (100% Federal share). Before any other distribution is made, sufficient funds must be made available to the IRS to establish and operate an automated fuel reporting system. [TRA 9002(h)]

Permits ¼ of 1 percent of the Surface Transportation Program funds apportioned to a State each fiscal year, at 100% Federal share, to be used on initiatives to halt the evasion of payment of motor fuel taxes.

Eligible Activities

Funds authorized specifically to carry out this program may be used only for the following purposes:

expand efforts to enhance motor fuel tax enforcement

fund additional IRS staff, but only to carry out functions described in this section